Record profit: MCB Bank posts earnings of Rs65.3bn in 2023, up over 89% YoY

MCB Bank Limited, one of Pakistan’s largest commercial banks, reported its highest-ever yearly profit, driven by an increase in its interest-based income.

In a consolidated statement released to the Pakistan Stock Exchange (PSX) on Tuesday, the bank posted a profit after tax of Rs65.27 billion in 2023, with an over 89% increase against Rs34.45 billion recorded in the same period of the previous year.

MCB demonstrated “exceptional financial performance for the outgoing year,” said Arif Habib Limited (AHL). “This jump in overall earnings was mainly on the back of growth in total income,” added the brokerage house.

MCB’s total income grew by 65% to Rs200.82 billion in 2023 from Rs121.87 billion recorded in 2022.

The bank announced a final cash dividend of Rs9 per share i.e. 90% for the year ended on December 31, 2023. This is in addition to an interim dividend(s) already paid at Rs21 per share i.e. 210%.

Jan-Jun: MCB Bank’s earnings increase over 150% year-on-year

Its profit before tax during the said period increased to Rs137.52 billion from Rs75.34 billion recorded in the same period the previous year, reflecting an increase of 83%.

Earnings per share of the bank in 2023 stood at Rs54.94 compared to Rs29 in 2022.

The bank’s net interest income in 2023 increased to Rs165.42 billion from Rs95.97 billion a year earlier i.e. a jump of 73%. Non-markup income rose to Rs35.4 billion, against Rs25.9 billion in the 2022.

During 2023, MCB saw its total non-markup interest expenses jump 28% to Rs63.57 billion, as compared to Rs49.85 billion in SPLY.